You have conquered your first city!
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Whenever you capture a city you will be given 4 options: 
Occupy, Pillage, Sack or Raze.
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~COL~<13> OCCUPY ~COL~<15> takes over a city with the minimum of damage.
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~COL~<13> PILLAGE ~COL~<15> takes over a city, damaging it a little, but giving you some
money in return.
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~COL~<13> SACK ~COL~<15> takes over a city but damages it severely.  It gives you a lot
more gold than pillaging, but leaves the city with no armies to produce.
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~COL~<13> RAZE ~COL~<15> burns a city to the ground, leaving an empty shell.  
Razed cities are useless.
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Let's just OCCUPY this first city...